Taxis to be taken out of COE bidding process: LTA

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Taxis will be taken out of the Certificates of Entitlement (COE) bidding process from next month, the Land Transport Authority (LTA) announced today.

Currently, taxi companies can bid for a new COE or pay Prevailing Quota Premiums (PQP) to register a taxi, with the latter only allowed in the case of a new taxi that replaces a deregistered one within six months. They are also only allowed to be registered using CAT A COEs, which is for cars 1,600cc and below, even though almost all taxis have engine capacities above 1,600cc.

This move takes into consideration the "influence that taxi operators may have on COE prices", as Singapore moves towards a lower vehicle growth rate, said the LTA in a statement, noting that taxis have been taking up a larger proportion of Category A COEs in recent times.

Taxi operators will then pay for COEs based on the PQP of CAT A, under the Vehicle Quota System, irrespective of whether the new taxis are intended to replace deregistered taxis or add to the existing fleets.

In addition, the COEs used for taxi fleet expansion will be taken from the Open Category, which can be used to register vehicles in any COE category.

"This is more reflective of the role of taxis in our public transport system and it is more equitable to use CAT E quotas that are contributed by all vehicle types, rather than drawing solely from CAT A quotas," said the LTA.

The LTA is in discussion with taxi operators on the proposed taxi availability standards and COE-related changes. More details on the COE-related changes will be provided early next month,

COE quotas for the next six months, earlier announced, will not be affected.